NEW DELHI: Sale of passenger vehicles (PV) in the domestic market declined by 2.71 per cent to 2,90,960 units in July 2018, from 2,99,066 units sold in the same month a year ago. The dip in sales is a first in nine months; the last time PV sales had declined in a month was in October 2017.
The fall, however, wasn’t due to declining demand but was largely attributed to high base effect from last year when sales skyrocketed because of reduction in duties in some segments under the then introduced Goods and Services Tax.
“Despite this drop in sales last month, we are satisfied with the situation as we believe that all the industry segments are on a growth path,” said Sugato Sen, deputy director general, Society of Indian Automobile Manufacturers (SIAM). It is expected that last year’s high base effect will impact growth rate for the next couple of months.Sen said that despite a decline in July, 10 million vehicles were produced in the country in the April-July period of the current fiscal, a 17 per cent growth over 9.3 million units manufactured in the same period of last fiscal.
In the PV segment, it is the fastest growing utility vehicle segment that took maximum hit in July. UV sales declined by 8.95 per cent in July 2018 to 79,092 units, while passenger car sales remained almost stagnant at 191,979 units in July, against the sales figure during the same month last year.
However, there was no such decline seen in the domestic two-wheeler segment. Sales in July rose 8.17 per cent to 18,17,077 units as motorcycle once again outpaced scooters. Motorcycle sales grew by 9.67 per cent to 11,50,995 units while scooters registered a rise of 5.12 per cent to 5,98,976 units.
Commercial vehicles too maintained a healthy double-digit growth in July and registered nearly 30 per cent growth to 76, 497 units, despite government introducing new axle norms, which was widely welcomed by the industry. Vehicle sales across categories registered a rise of 7.97 per cent to 22,44,875 units in July 2018 from 20,79,204 units a year ago.
Demand continues
■ Despite a decline in July, 10 million vehicles were produced in the country in the April-July period.
■ This marks a 17% growth, as 9.3 million PV units were manufactured in the same period of last fiscal.
■ Utility vehicle segment took maximum hit in July 2018. UV sales declined by 8.95% to 79,092 units during the period.